2022 ANNUAL GOLDEN ARROW AWARDS FOR INSURANCE COMPANIES

2022 Annual Golden Arrow Awards for Insurance Companies official banner (edited by: Rolyn May R. Galvez)

On 23 September 2022, the Institute of Corporate Directors Philippines (ICDPh) in partnership with the Insurance Commission, officially launches an annual corporate governance recognition dedicated to all Insurance Companies. The awarding event was conducted on a hybrid setup - having a live coverage on Facebook and a face-to-face arrangement in collaboration with Insurance Institute for Asia and the Pacific (IIAP). The Golden Arrow Awards was hosted by Ms. Cathyrine P. Perez, Director of ICD Philippines, Corporate Governance Advocacy Department.

The Insurance Commission’s very own commissioner, Atty. Dennis B. Funa started off the event with his opening remarks. Commissioner Funa initiated his speech with a warm congratulatory message for the recognized insurance companies for having exemplary outcomes in their 2021 ASEAN Corporate Governance Scorecard Assessment.

“My congratulations to our recognized Insurance Companies for the exemplary outcomes of the 2021 ASEAN Corporate Governance Scorecard assessment. I take pride and honor in acknowledging these successes, recognizing the difficult years in which they were achieve. Indeed, the pandemic took a toll on many industries but thankfully, the insurance industry remains resilient and steadfast. This we owe not only to the companies' financial robustness but to their sound and responsible corporate governance. It is shown through during the dark months of the crisis we faced.”

Commissioner Funa also recognized the beyond insurance companies’ obligations to its policyholders and members. The commissioner mentioned that it is practiced by the companies in the spirit of good governance, and they recognized that businesses have interest beyond profit.

Commissioner Dennis B. Funa having his opening remarks at 2022 Annual Golden Arrow Awards (photo by: Mariella Racxine Ramintas)

In addition, Commissioner Funa brought up the recently issued circular specifically for non-life insurers regarding the participation in Philippine Catastrophe Insurance Facility or PCIF. PCIF has its merits and IC believes that it will help the domestic market, marginalized Filipinos, and the communities that will be damaged by catastrophes. And so, the commissioner hopes to have every insurance company to join PCIF as a matter for good corporate governance.

Commissioner Funa, then, reiterated the importance of corporate governance in every business and how he expects Insurance Commission Regulated Companies (ICRCs), especially the ones being recognized in the awarding event, to continue in adhering to good corporate governance despite any challenges in this current times.

“As I have said before, corporate governance is a significant factor in achieving a company's objectives, long-term goals, and economic growth. In today's market-oriented economy and with the effects of globalization, the importance of corporate governance is constantly growing in relevance. Despite the challenges of our time, I hope that our recognized companies will continue to strive hard and remain adherent to corporate governance rules and regulations. For our part, rest assured that the Insurance Commission will continue to support undertakings that will uphold the growth and integrity of our nation's economy.”

Lastly, Commissioner Funa expressed his appreciation to the Institute of Corporate Directors Philippines for the work and effort it exerted in relation to the annual assessment of Insurance Companies. Commissioner gave his deep gratification for the IC-ICDPh partnership which promotes the practice of good corporate governance in the Philippines.

Next to speak in the awarding event was the Institute of Corporate Directors Philippines’ Chairman, Atty. Cesar L. Villanueva. Chairman promptly recognized the continued partnership of IC and ICDPh in promoting and adopting good corporate governance practices in the Philippines to compete with international corporate governance standards.

“It is an honor and an institutional privilege for the Institute of Corporate Directors Philippines to have collaborated and to continue to collaborate with the Insurance Commission in pursuing the Annual Corporate Governance Scorecard Assessments as it has been modified to cover the insurance firms on the Philippines. Truly, we celebrate this afternoon, the achievements of the Insurance Commission and the Insurance Companies under its jurisdiction in embracing and promoting a culture of good corporate governance that compares very well with international corporate governance standards and best practices.”

Afterwards, Atty. Villanueva introduced the significance of Corporate Governance Scorecard (CGS) Assessment of insurance industry and how it was related to ASEAN Corporate Governance Scorecard (ACGS) Assessment of Publicly listed Companies. This was in part of how well-versed the six participating ASEAN countries namely: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam in addressing the aim to raise the corporate governance standards and practices among ASEAN Publicly listed Companies and thereby making well-governed ASEAN PLCs. In line with this, Chairman Villanueva appreciates the work ethic of Insurance Commission to extend these practices to all Philippine insurance companies and then noted that these companies form part of the Philippine economy as a whole.

“Indeed, it constitutes one of the best means to raise the bar of corporate governance compliance in the insurance sector and thereby make insurance companies attractive to investors and to classify them as an investable asset class of our country. All Philippine insurance companies must now realize that together with all Philippine Publicly listed companies, they form an integral part of the greater Philippine commercial sector's trust to attract both local and foreign investments into our economy.”

ICDPh Chairman, Atty. Cesar L. Villanueva giving his message to insurance companies (photo by: Carla Angeli A. Ronquillo - Solis)

Atty. Villanueva mentioned that businessmen can do anything even the pursuit of the highest levels corporate governance in which he called “commercial patriotism”. And this benefits various stakeholders and most especially makes the Philippines as one of the most competitive jurisdictions in Southeast Asia and the rest of the world. As his closing, Atty. Villanueva gave his heartfelt congratulatory message to the 16 insurance companies who will receive golden arrow awards and he hopes for the increase in number of awardees for the years to come.

Following the messages of both Commissioner Funa and Chairman Villanueva was the presentation of 2021 Corporate Governance Scorecard (CGS) result presented by Ms. Rebecca Sarmenta, the Chairperson of the Corporate Governance Standards Committee of the Institute of Corporate Directors Philippines. Through this presentation, the 2021 CGS assessment timeline and process were unfolded. Given the opportunity, Ms. Sarmenta gave a brief background on how the assessment was conducted and what are the memorandum circular issued by Insurance Commission that supports the CGS assessment.

“All information needed are taken from the company's website specifically their annual report, notices and minutes of meetings, manual on corporate governance, board and committee charters, and other relevant corporate governance policies and practices. Again, to emphasize, the assessment is based on publicly available information. So, there is no there is direct contact or interaction with the insurance company covered.”

For the period under assessment, Ms. Sarmenta mentioned the total number of insurance companies who were assessed comprising of 30 life insurance companies, 52 non-life insurance companies, and 30 mutual benefit association in a total of 112 Insurance Companies. With the positive outcome compared to 2020 CGS Assessment, the 2021 CGS Assessment also made an improvement mainly because of availability of company website of insurance companies which can be credited to Insurance Commission’s circulars issued for them to comply with. But still, compared to the banking sector of publicly listed companies, the insurance industry has a long way to go. And with the challenges of pandemic and the transition of what Insurance Companies need to comply from ASEAN Corporate Governance Scorecard to Annual Corporate Governance Report, insurance industry has a lot of improvement to make. These were all presented with the hope to enlighten the insurance companies and have a better result for the next annual Golden Arrow Awards.

A warm congratulations was given by Ms. Sarmenta to the awardees as she presents the top 10 of each sector in insurance industry. She closed her presentation with the commend to all insurance companies for the great improvement over the years in terms of corporate governance practices.

For the main part of the awarding, the recognition of the Golden Arrow Awardees. The GOLDEN ARROW is awarded to Insurance Companies that achieved a score of at least 80 points in the 2021 Corporate Governance Scorecard (CGS) Assessment. Five (5) levels of performance in corporate governance will be bestowed. Each ascending level is depicted by an increasing number of golden arrows, as follows:

For those who were able to score 80-89 points, they will be given with 1 golden arrow award. For those who got 90-99 points, they will receive 2 golden arrows award. For those who got 100-109 points, they will have 3 golden arrows award. Then for the companies who scored 110- 1199 points, they will be given with 4 golden arrows award. Lastly, for those who scored over 120 points, they will receive 5 golden arrows award.

On stage, in giving out the awards, Commissioner Dennis Funa of Insurance Commission, and Chairman Cesar Villanueva of Institute of Corporate Directors Philippines, together with Ms. Rebecca Sarmenta, Chairperson of the Corporate Governance Standards Committee of Institute of Corporate Directors Philippines, handed over the certificate of awards to the Golden Arrow Awardees starting off with 1-Golden Arrow Awardees. The awardees were called in alphabetical order. It was followed by 2-Golden Arrow Awardees.

Before proceeding to the 3-Golden Arrow Awardees, the top performing companies in Life Sector, Non-life Sector, and Mutual Benefit Associations was initially recognized.

Top Performing Companies in the Life Sector

AIA Philippines Life and General Insurance Company, Inc.

Insular Life Assurance Company, Ltd.,

Pru Life Insurance Corporation of U.K.

Top Performing Companies in the Non-life Sector

BPI/MS Insurance Corporation

National Reinsurance Corporation of the Philippines

Top Performing Companies in the Mutual Benefit Association Sector

Armed Forces & Police Mutual Benefit Association, Inc.

CARD Mutual Benefit Association, Inc.

Kasagana-Ka Mutual Benefit Association, Inc.

Knights of Columbus Fraternal Association of the Philippines

And for the 3-Golden Arrow Awardees, for being one of the most outstanding insurance companies in the industry in terms of corporate governance practices, the three 3-Golden Arrow Awardees shared their endeavors and triumphs. Again, in alphabetical order, the first to be recognized with 3-Golden Arrow Award was AIA Philippines Life and General Insurance Company, Inc.

Represented by Atty. Jena Dones, AIA Philippines Life shared its testament to company’s commitment to good corporate governance and was committed to their ESG strategies despite of difficulties to deliver it amidst lockdown.

“Deeply rooted in the AIA operating philosophy of doing the right thing, the right way, with the right people and the results will come. This drives the way we do business and forms the foundation on which we built our risks and compliance, policies and procedures. In 2020, AIA Philippines took the leap and committed to abide by the principles of environmental, social, and corporate governance to embed sustainability into the way we do our business.”

Atty. Jena Dones giving AIA Philippines’ appreciation message (photo by: Kevien Anthony Cunanan)

The AIA Philippines was sincerely grateful to their customers who inspired them to be better, and also, they were grateful to the Insurance Commission and Institute of Corporate Directors for the recognition and honor which makes them motivated to keep up with the good work in bringing healthier, longer, and better lives for Filipinos.

The second 3-Golden Arrow Awardee was Insular Life Assurance Company, Ltd., represented by Atty. Renato S. De Jesus, The Executive Secretary, Chief Legal and Governance Officer, and Corporate Secretary of the company.

Atty. Renato S. De Jesus delivering the message of their Executive Chair, Nina Aguas’ regards (photo by: Kevien Anthony Cunanan)

Atty. De Jesus made his way by giving the message right coming from the Executive Chair of Insular Life, Ms. Nina Aguas. It was doubly meaningful award for InLife as it was obtained even during the worst crisis of global proportions of our generation. InLife embraced the belief that good corporate governance is vital to the sustainable and long-term success of the corporation. The 112 years of reputable and business equities was the current InLife’s aim to add value.

“The starting point is always our sense of purpose and stewardship. Generating profit is of course important, and we need to scale to be financially stable and to create impact. But our purpose does not end there, quite the contrary. Our focus is on the difference we make in the broader society. We help in developing the local economy in our communities, and continually looking for ways to offer people life chances, looking after them first as our fellow countrymen, and second, as part company owners and never as mere consumers.”

The strength and reliability of their corporate governance was the foundation of their belief in doing their part in building better society and the very essence of what they mean when they say a lifetime for good.

And the last, but not the least awardee of 3-Golden Arrow Award was Pru Life Insurance Corporation of U.K. represented by their very own Chairperson of the Board, Ms. Imelda Tiongson. Pru Life U.K. was proud to receive the award even in this challenging time. The insurance company wasn’t new in being recognized as they were also been awarded with international life insurer of the year in view of their innovative products and services. As Ms. Tiongson mentioned, trust, diversity, and accessibility helped to become one of the best.

“This is a proof of what ICD’s been saying that there's a strong direct correlation between good governance and being solid in business. ... Trust, our commitment on delivery of excellent services has made us among the trusted companies in the Philippines. Diversity, we're very proud of that, we believe, having diversity not just in age, gender, but also skill in all levels including board and management. Accessibility, as being mentioned with regards to digital, we're happy to say that we’re already digital end-to-end, as well as having a digitally savvy team with three of the board members into digital as well as our own President.”

Ms. Imelda Tiongson sharing Pru Life U.K.’s corporate governance journey (photo by: Kevien Anthony Cunanan)

The principles of good governance made the Pru Life strive and do better, together with respect, transparency, accountability, and fairness to their stakeholders, shareholders, policyholders, and to the communities that they serve. Ms. Tiongson also added the proactiveness of Pru Life in areas of environmental sustainability and community investment. All these were in pursuit of corporate excellence through good governance and good practices, in doing well by doing good.

2022 Golden Arrow Awards for Insurance Companies also recognizes the company who exerted a lot of effort to improve their corporate governance practices and become better than what they did from the previous year. With an increase of more than 20 points in their corporate governance assessment, a special recognition was given to Knights of Columbus Fraternal Association of the Philippines as the Most Improved Company in the 2021 Corporate Governance Scorecard assessment. Received and represented by their Lead Independent Trustee, Mr. Artemio C. Dela Cruz, the KCFAPI as what they call was the insurance arm of Knights of Columbus and supports the Catholic Church. As they acclaimed, Cardinal Tagle was one of their scholars. Being the biggest catholic lay organization for men around the world, KCFAPI diligently complied with the requirements needed for them to operate especially in relation to the Insurance Commission.

“It has also regularly complied in the submission of other report and all the requirements by other governmental instrumentalities. The company also has created a wide risk management system where it determines, identifies, and manages unforeseen risks that may hamper its operation. It has further designated and appointed independent trustees who are hugely qualified, highly competent, and decided with knowledgeable in their own fields of endeavor to the board of trustee. The company regularly revises and update each manual on corporate governance to efficiently address the needs of stakeholders, member, and beneficiaries and make it more attuned and more adaptable with the times.”

The company’s accomplishments were attributed to their diligence and continued good practices in terms of corporate governance. KCFAPI was very much delighted with the recognition of the most improved company which rewards their hard work and compliance with the requirements set forth by the Insurance Commission. A heartfelt gratification was given by the KCFAPI’s Lead Independent Director.

Mr. Artemio C. Dela Cruz having his speech for KCFAPI’s triumphs in corporate governance (photo by: Kevien Anthony Cunanan)

And before the end of the event, Institute of Corporate Directors Philipines’ Chief Executive Officer and Teaching Fellow, Dr. Carlos Jose P. Gatmaitan, gave his message of being honored to become part of this milestone to have the Annual Golden Arrow Awards for Insurance Companies. A warm gratitude of the CEO was given to the Insurance Commission, ICDPh Team, and of course, all the insurance companies who attended on-site and online. Dr. Gatmaitan congratulates the 16 insurance company awardees. According to ICDPh’s CEO, the event was the fruit of hard work and in collaboration with the Insurance Commission and insurance companies’ boards and senior management towards improving insurance industry’s corporate governance practices. Dr. Gatmaitan hopes that the event paves the way for a better insurance industry not only in the perspective of recognized companies but more importantly, inspires all Insurance Commission Regulated Companies to do better, to have more companies being recognized for the next Golden Arrow Awards.

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